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Customer Loyalty Is Continuous Value Creation

You win a new client when you create new value for them. You help them solve some existing problem, creating more value around some particular challenge. Or you create new value by helping your dream client move to a better future state even though things may be okay when you find them.

But if that’s the only value you create, you leave yourself susceptible to complacency and to a competitive displacement when one of your competitors finds a way to create new value.

Execution is certainly part of a customer loyalty and client retention strategy.

But the real key to customer loyalty and client retention is to continually and continuously find new ways to create value. You put a ton of effort into trying to find new ways to create value for your dream clients when they are still prospects. To generate customer loyalty and lifetime clients you have to put as much effort into creating new value for your clients after you’ve won their business, after you’ve had their business for some time.

You generate loyalty when you act as if you’re part of your client management team, always finding the next idea, always driving the business forward, never allowing the status quo to take hold, and always pushing for change. This is what generates loyalty.

Loyalty is about helping a client continually move their business forward. That’s how you earn the loyalty. Long periods with little or no new value creation opens the door for your competitors to share their new ideas and make the case for change you should be making.

Questions

What puts your customers in the at risk column?

What opens you to the threat of a competitive displacement?

What are the factors that lead your client to start taking calls and meetings with your competitors salesforce?

How do you go from quarter to quarter always finding ways to create new value?

What are the factors that make you loyal?


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Comments

comments

  • http://www.callboxinc.co.uk/ Hannah Hamilton

    Loyalty comes from trust. That’s the main challenge for us, to gain our clients trust and own their loyalty and one way to do it is providing them good products and services that they deserve. Wonderful post. :)

    • http://www.thesalesblog.com S. Anthony Iannarino

      Thanks, Hannah. I agree. I do believe our clients need to trust that we’ll continue to grow with them. They fear complacency . . . and if they don’t, we should help them fear it.

      • http://www.callboxinc.co.uk/ Hannah Hamilton

        Exactly, we have to make them dependent of us. :)

  • http://www.ogosense.com/ Ogy Nikolic

    Anthony’s question: How do you go from quarter to quarter always finding ways to create new value?

    EXAMPLE #1: We have a fixed cost technical maintenance program for Open Source software. If something is broken, we’ll fix it for no extra charge. When the issue is fixed much faster than expected, clients are very thankful and become more loyal.

    EXAMPLE #2: We also have an ongoing business improvement process called ogosenseMethodology. It starts with business strategy, stats, interviews, research and always ends with an executed project that improves one or more key business indicators.

    Would these be good examples of continuous value creation and improving customer loyalty?

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